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How do bonuses work towards salary cap?
Posted on 1/3/21 at 5:46 pm
Posted on 1/3/21 at 5:46 pm
With them talking so much about Sanders’ bonus, it got me wondering how this plays towards the salary cap.
Do they only count the base towards the cap or do you have to have the requisite amount reserved in your cap in the event the performance incentives kick-in? Also, are there limits to what the performance incentives can be? If the bonuses don’t count towards the cap, couldn’t you just make their base super low but then have incredibly low goals as well for them to hit a total compensation package that is market?
Seems like you could get really creative with these, unless there are a lot of rules around them.
Do they only count the base towards the cap or do you have to have the requisite amount reserved in your cap in the event the performance incentives kick-in? Also, are there limits to what the performance incentives can be? If the bonuses don’t count towards the cap, couldn’t you just make their base super low but then have incredibly low goals as well for them to hit a total compensation package that is market?
Seems like you could get really creative with these, unless there are a lot of rules around them.
6
Posted on 1/3/21 at 5:52 pm to NolaLovingClemsonFan
Would think it was only guaranteed money but honestly have no idea...great question
Posted on 1/3/21 at 5:53 pm to NolaLovingClemsonFan
Need Bone to explain.
Posted on 1/3/21 at 5:54 pm to NolaLovingClemsonFan
I'm pretty sure they apply like signing bonuses. They are stretched over the length of the contract.
Posted on 1/3/21 at 5:55 pm to NolaLovingClemsonFan
Should come out of Peat's salary
Posted on 1/3/21 at 5:59 pm to NolaLovingClemsonFan
Found this:
Performance bonuses are only paid to the player if they meet the requirements as defined by the bonus. Performance bonuses count against the salary cap; however, a team can exceed the salary cap due to performance bonuses by the maximum performance bonus cushion amount of 7.5 percent....Not sure if a 100% accurate currently, would think these things change every NFLPA contract...
Performance bonuses are only paid to the player if they meet the requirements as defined by the bonus. Performance bonuses count against the salary cap; however, a team can exceed the salary cap due to performance bonuses by the maximum performance bonus cushion amount of 7.5 percent....Not sure if a 100% accurate currently, would think these things change every NFLPA contract...
This post was edited on 1/3/21 at 6:01 pm
Posted on 1/3/21 at 6:01 pm to philly444
quote:
Should come out of Peat's salary
Lol agreed.
Posted on 1/3/21 at 6:14 pm to NolaLovingClemsonFan
I believe they count against the cap based on some probability of success calculation.
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